Territorial connection for liability – condition for taxability is:

Residence of issuer?

Location of transaction (e.g. traded on local stock exchange)?

Location of party (e.g. at least one party to the transaction is resident)?

At least one party must be a Belgium resident otherwise the transaction is exempt (see exemptions).

Residence of financial intermediary?

A Belgian intermediary acting in the course of its business must intervene in the deal.

Other relevant conditions for taxability

The transaction must relate to public funds (which refers to all marketable securities by nature traded on a known stock exchange).

Exempt transactions

Primary market transactions are not included.

There are several specific exemptions in particular transactions made by non-resident taxpayers for their own account.

Person responsible for collecting/remitting tax

The Belgian professional intermediary (see above).

Liable persons

The Belgian professional intermediary (see above).

Person who in practice bears the tax

The buyer and the seller.

How enforced

Liable persons are required to file a return and to pay the FTT by the end of the month following the one when the transaction(s) occurred. They are required to keep and, make available to, information for the tax authorities the relevant data for six years.

Penalties in case of failure to file/pay

Interest will be due in the case of late payment. A penalty will be due in the absence of FTT return and when relevant data is missing.

Tax base

Acquisitions/purchases: sums paid by the purchaser after deduction of the brokerage commission.

Sales: sums received by the seller or assignor without deducting the brokerage commission.